From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

Posted On: 19.12.2025

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

At ICBC "Khorgos," situated on the border between China and Kazakhstan, authorities have detained 80 people over a brief period, all accused of embezzlement, sending shockwaves through the project.

Shakespearean-level dramas continue to unfold around Khorgos, which was initially promoted as a flagship project of the 21st century.

Back in 2005, massive construction began in a small Kazakh village of the same name, a project compared to such grand endeavors of the century as the Turkmen Canal and the Transpolar Highway… However, all these "projects of the century" ultimately remained just plans, while the International Center "Khorgos" on the Kazakhstan-China border was indeed built. Yet, it continues to be plagued by scandals and criminal cases, not on the Chinese side, but on the side of the Republic of Kazakhstan.

These scandals became particularly vivid under Yersyn Orazayev, who secured such a lucrative position not for his good looks: Mr. Orazayev is a close friend of Nurali Aliyev, the son of Dariga Nazarbayeva. Nurali Aliyev is the eldest grandson of Kazakhstan’s former president, Nursultan Nazarbayev.

And the seemingly unsinkable Nazarbayev clan has its own vested interest in the ICBC "Khorgos."

Orda.kz against Yersyn Orazayev

Before delving into the shady dealings of Yersyn Orazayev, who firmly held the position of head of ICBC "Khorgos" and caused significant trouble—ultimately leading 7 major investors to appeal to Kazakhstan’s President Tokayev to address the hellish working conditions at "Khorgos"—let’s highlight this fact.

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

Yersyn Orazayev in person

Mr. Orazayev lost a court case to journalist Sandugash Duysenova of Orda.kz, who conducted an investigative report on what exactly is happening at ICBC "Khorgos" on the Kazakh-Chinese border.

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

Message from ICBC "Khorgos" investors:

It should be noted that the investigation is thorough and detailed. It was based on facts provided by ICBC "Khorgos" investors.

Apparently, Mr. Orazayev, who lives by the "buy-sell" principle, was greatly angered.

He even filed a lawsuit: Orazayev demanded that the information in Duysenova’s article be declared untrue and damaging to his honor, dignity, and business reputation.

He also demanded a retraction on the website, compensation for moral damages from Duysenova in the amount of 3 million tenge, procedural costs including a state fee of 35,000 tenge, payment for a specialist’s services of 300,000 tenge, and more.

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

Sandugash Duysenova

Neither the defendant Sandugash Duysenova, nor the defendant’s representative Ilmira Nazyrova, nor the lawyer of OrdaMedia.kz LLP Olga Didenko acknowledged the claim during the court hearing, as the author of the investigation had directly quoted the investors’ words.

This was confirmed by witness testimonies. The witnesses—investors involved in construction—stated that the management of ICBC "Khorgos," represented by Orazayev, had created unbearable working conditions, and journalist Duysenova merely highlighted these pressing issues.

Later, the publication caught the attention of the prosecutor’s office in the Zhetysu region.

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

"Khorgos" – International Center for Cross-Border Cooperation

A prosecutorial investigation into the activities of ICBC "Khorgos" began. The results were shocking.

But Mr. Orazayev was confident that the storm clouds would pass… and he would be back on top.

However, it became known that employees of the Financial Monitoring Department of the Zhetysu region on the Kazakh side discovered 6 underground casinos: they found 76 slot machines, 43 gaming tables, technical equipment for gambling, and over 60,000 yuan.

Left for Hajj in Mecca

Eventually, the case of Orazayev attracted the attention of the General Prosecutor’s Office of the Republic of Kazakhstan. While prosecutors were reviewing documents, the unperturbed head of ICBC "Khorgos," Orazayev, flew off for Hajj in Mecca: he was confident in his invincibility!

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

JOINT STOCK COMPANY MANAGEMENT COMPANY OF THE SPECIAL ECONOMIC ZONE INTERNATIONAL CENTER FOR CROSS-BORDER COOPERATION KHORGOS, Zhetysu Region, BIN 050940007038

Meanwhile, prosecutors were examining complaints from participants of the "Khorgos" special economic zone about extortion and threats from Yersyn Orazayev.

It turned out that Orazayev had distanced himself from fulfilling his direct duties: he did not engage in planning or coordinating the activities of the subordinate organization and consistently ignored investors.

It was also revealed that Mr. Orazayev was far from the first problematic leader in the more than 20 years since the establishment of ICBC "Khorgos."

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

JOINT STOCK COMPANY MANAGEMENT COMPANY OF THE SPECIAL ECONOMIC ZONE INTERNATIONAL CENTER FOR CROSS-BORDER COOPERATION KHORGOS, Zhetysu Region, BIN 050940007038

It is also worth noting that this International Center near the village of Khorgos was created for duty-free trade between China and Kazakhstan.

Since 2005, over 45 billion tenge has been allocated from Kazakhstan’s republican budget for infrastructure development. These funds were used to build roads, electricity, and water supply networks, but three critical facilities remain unfinished: the second-stage sewage pumping station, sewage treatment facilities, and a boiler house.

LLP "LA-Rivera" paid over 142 million tenge for a company to build the pumping station. The sewage treatment facilities, costing 2.2 billion tenge, were entrusted to LLP "Bazis Construction." The boiler house was to be built by "Bazis" with over 2 billion tenge allocated for construction, yet none of these facilities were completed.

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

ICBC "Khorgos"

Despite not completing any of these projects, Orazayev began begging the akimat of the Zhetysu region, which owns ICBC "Khorgos," for money to build a gas pipeline.

Orazayev also created significant bureaucratic delays when concluding and extending contracts with investors. He did not specify deadlines for submitting applications to the investment council, forcing businessmen to knock on high doors.

For instance, in May 2023, the management company signed a contract for the construction of the Victoria City exhibition complex with LLP "Rezon Project." The investment amounted to 23 billion tenge. The company requested 7 months for development but failed to meet the deadline.

The company sent a letter requesting an extension, but received no response.

Mr. Orazayev was also unimpressed by applications for the construction of shopping centers and warehouses from LLP Business Center Jibek Joly, LLP Smart Future Systems, LLP Satken, and others.

Incidentally, it was revealed that before joining ICBC "Khorgos," Mr. Orazayev had "practiced on cats" at JSC "Lokomotiv," where he held the position of executive director.

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

And, apparently, he settled into ICBC "Khorgos" not without the help of the Nazarbayev clan?

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

Nurali Aliyev, son of Dariga Nazarbayeva

David Lee, the owner of LLP "Tulip Khorgos," specifically complained about systematic extortion and threats from Yersyn Orazayev, a friend of Dariga Nazarbayeva’s son. He stated that Orazayev personally demanded $600,000 from him for protection, but Lee refused. In response, Orazayev cut off his electricity and water supply and refused to extend the construction contract, even though Lee’s company is building a five-star hotel at ICBC "Khorgos" for 39 billion tenge.

Additionally, David Lee reported a theft at his office: thieves stole 7 computers.

The Nazarbayevs are also involved

Moreover, Orazayev fought hard for the luggage terminal of LLP Terminal Aс: he wanted to take it into his ownership.

Previously, the luggage terminal was owned by Kazakhstan Technology Solutions Ltd, a company belonging to Nurbol Nazarbayev, the son of Bolat Nazarbayev (the brother of Kazakhstan’s former president, now deceased).

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

Bolat Nazarbayev

Following the company of Bolat Nazarbayev, LLP Kazakhstan Technology Solutions Ltd, a new firm, LLP Terminal A, emerged.

The director of this firm, Adil Orynbasarov, assured that the company had no connection to either Bolat Nazarbayev or Nurbol Nazarbayev.

The head of ICBC "Khorgos" at the time, Birzhan Zhylkaidarov, confirmed that the old ties were severed, the company of Nazarbayev’s brother was gone, and luggage transportation was awarded to LLP Terminal A.

However, Orazayev, who took over as the new head, persistently tried to bring the "prodigal son" back home.

But he failed!

The case of Vasiliy Ni

It should be noted that the International Center "Khorgos" is, in a way, an entire city consisting of markets and shopping centers. Among the most well-known are "Zhong Ke 1," "Zhong Ke 2," "Golden Port," "Mall Yiwu," and "Jian Yuan": they sell clothing, footwear, cosmetics, electronics, leather goods, toys, dishes, tools, textiles, and more.

There is also the "King Kong 1" shopping center: this large store sells fur and leather products.

However, over its entire existence, ICBC "Khorgos" has gained nothing but notoriety: among the people, this place is called cursed, as dozens of officials have already become subjects of criminal cases.

The scandalous story related to one of Yersyn Orazayev’s predecessors, namely Vasily Ni, is still widely discussed.

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

Vasily Ni

Mr. Ni is remembered for promising, in exchange for a bribe, to declare a company the winner in the construction of a five-star hotel complex on the territory of ICBC "Khorgos." Vasily Ni received a $1 million bribe from a representative of LLP "T. Khorgos."

And he got caught!

Later, the head of the investigative-operational group of Kazakhstan’s Anti-Corruption Service filed a petition with the Medeu District Court No. 2 in Almaty to sanction the detention of V. Ni.

But something extraordinary happened: Vasily Ni was suddenly… released.

This was reported by "Karavan."

It is said that this shocked many residents of Kazakhstan at the time.

1,500 volumes of a criminal case

The largest corruption scandal at the international center occurred in 2011. At that time, the financial police uncovered a complex smuggling scheme from China to Kazakhstan. Members of an organized crime group transported contraband across the border on a massive scale: the criminals enjoyed protection from employees of the National Security Committee (NSC).

The criminal case comprised over 1,500 volumes.

The trial began on June 20, 2013, involving 4 prosecutors and 35 lawyers. A total of 162 court hearings were held, during which numerous witnesses testified, including an agent embedded in the organized crime group. One of the main defendants, Talgat Kairbayev, was found guilty of organizing and leading a criminal organization, economic smuggling, and other charges. He was sentenced to 16 years in prison with confiscation of property.

The former head of the customs service in Almaty region, Kurmanbek Artykbayev, was sentenced to 14 years with confiscation of property and stripped of his rank as a customs service colonel.

From smuggling to underground casinos: how Yersyn Orazayev turned Khorgos into a criminal capital under the protection of the ex-president’s family

Kurmanbek Artykbayev

However, the leader of the organized crime group, E. Madibayev, who from 2007 to 2011 headed a structural unit that smuggled goods from China to Kazakhstan on a large scale, remained at large. He was later detained by the National Anti-Corruption Bureau in Almaty.

Mass unrest at the "Khorgos" border checkpoint occurred in April 2015.

On April 8, 2015, at the customs post, anti-corruption service employees detained customs officer Taiken Bopau. He was suspected of receiving a bribe of 50,000 tenge. At that moment, a group of people attacked the anti-corruption agency employees, demanding Bopau’s release.

As a result, the instigator, Alisher Tolebekuly, and three others were tried for "Obstructing the administration of justice," "Hooliganism," and "Use of violence against a representative of authority."

But where is Mr. Orazayev today?

After the investigation by Orda.kz and the response from the General Prosecutor’s Office of Kazakhstan, he left his comfortable position… And some time later, he resurfaced as the head of the Industry Council for Logistics at the Atameken Regional Chamber in Almaty.

But when will there be a criminal case? Or is Mr. Orazayev not afraid of a criminal case either?

After all, his predecessor Vasily Ni at "Khorgos" took a $1 million bribe but did not go to jail, even though Vasily Ni is not even friends with Nurali Aliyev, the son of Dariga Nazarbayeva.

How much longer will official Astana blush for its ICBC "Khorgos"?

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